The Texas Education Agency began investigating the Canutillo Independent School District under allegations that it may have cheated federal accountability measures under the direction of former Superintendent Damon Murphy. (Times file photo)

The Texas Education Agency this week began its investigation of possible efforts to cheat federal accountability measures at the Canutillo Independent School District.

State auditors were at the district Tuesday through Thursday interviewing employees and gathering documents to determine whether the numbers of limited-English-speaking students and special education students were manipulated so some 10th-graders avoided taking state-mandated tests that determine whether a school or district meets federal standards.

Agency spokeswoman DeEtta Culbertson said it's not known when auditors will finish a preliminary audit report.

The district has the opportunity to respond to the preliminary findings, and after the TEA receives the response, a final report will be issued.

Reporter Hayley Kappes

Based on the findings, the agency could lower the district's accreditation status or institute other sanctions against the district.

District officials said they were limited on what they could say about the investigation.

"At this moment, all we can really say about the audit is that we're cooperating and we're making sure that the auditors have all the resources of the school district at their disposal," said district spokesman Gustavo Reveles Acosta.

The investigation is based on internal audit findings Canutillo officials released Dec. 6 that alleged former Superintendent Damon Murphy directed former Canutillo High School Principal Jim Fry to reclassify some limited-English-speaking sophomores to the 11th grade midyear so they avoided taking state exams used in factoring federal accountability results.

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Canutillo's findings are part of a broader internal audit that has not been finished.

School board President Armando Rodriguez said state auditors had full access to the district internal auditor's ongoing work.

Rodriguez met with the state auditors on Thursday, but he declined to give details about what they discussed.

"We had a positive discussion on the steps the district has taken, and I believe the TEA appreciated the steps our district has taken to ensure we do what's in the best interest of our kids," Rodriguez said. "Canutillo has identified the issues on our own initiative."

Based on the internal audit report, the Canutillo school board voted to start the process of firing Murphy, who has been linked to similar cheating accusations at the El Paso Independent School District.

Under pressure, he agreed to resign effective Feb. 1.

Murphy has been on paid administrative leave since Dec. 19 and will get $19,500 as part of the agreement for him to leave.

Unlike its investigation of the Canutillo district, the state agency did not conduct an onsite visit when it was auditing the El Paso Independent School District in 2010 based on complaints by then-state Sen. Eliot Shapleigh that the district was "disappearing" low-performing students to cheat accountability.

When asked why the agency did an onsite visit for the Canutillo investigation, TEA spokeswoman Culbertson said, "It's just what staff decided was necessary."

The state twice cleared the El Paso district of wrongdoing, but after former Superintendent Lorenzo García pleaded guilty to orchestrating the cheating scheme, the agency in August put the district's accreditation on probation and assigned a monitor.

Last month, Texas Education Commissioner Michael Williams appointed a conservator to run the district pending federal approval of a five-member board of managers Williams created to replace the school board for up to two years.

State auditors this month will start an investigation to determine how the TEA failed to catch the cheating scheme at the El Paso school district.

Hayley Kappes can be reached at hkappes@elpasotimes.com; 546-6168. Follow her on Twitter @hayleykappes